CGI Federal Inc. v. FCi Federal, Inc.
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The Supreme Court affirmed the the judgment of the circuit court setting aside the jury’s verdict awarding CGI Federal Inc. $12 million in damages for its fraudulent inducement and breach of contract claims against FCi Federal, Inc., holding that the circuit court did not commit reversible error in its judgment.
This lawsuit related to a teaming agreement entered between the parties to obtain a federal government contract. After the jury rendered its verdict, the circuit court set it aside on the grounds that the teaming agreement did not obligate FCi to extend a subcontract to CGI and that CGI did not prove fraud damages. The court further granted FCi’s motion for summary judgment on CGI’s alternative claim for unjust enrichment. The Supreme Court affirmed, holding that the circuit court did not err in (1) overturning the jury’s verdict on the breach of contract claim; (2) vacating the jury’s award of damages for the fraudulent inducement claim because CGI cannot recover any lost profits on this claim; and (3) entering summary judgment for FCi on the unjust enrichment claim because CGI may not recover on a quasi-contractual claim that is otherwise precluded by a contract which CGI has affirmed.
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